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WTI Crude futures are currently trading at $52.85-higher by 4.28% as compared to the previous closing. The contract gained more than 5% today after the U.S. and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the OPEC that is expected to cut supply.
Brent crude futures were trading at $61.41-higher by 3.83% at the time of writing.
Crude also received support from an announcement by the Canadian province of Alberta that it would force producers to cut output by 325,000 barrels per day to deal with a pipeline bottleneck that has led to the commodity building up in storage.
OPEC ministers meet on Dec. 6 in Vienna to decide on production policy for the next six months amid a growing surplus in world markets. The group, along with non-OPEC member Russia, is expected to announce cuts aimed at reining in a production surplus that has pulled down crude prices by around a third since October.
Within OPEC, Qatar announced today that it would leave the producer club in January to focus on its gas ambitions.
Meanwhile, oil producers in the U.S. continue to produce record amounts of oil, with crude output at a level of more than 11.5 million barrels per day.
In a related report that is published by the API every week, the API is scheduled to report U.S. crude supplies for the week ended 30th Nov. on Tuesday. The API is expected to report a rise of 1.9 million barrels in US crude supplies. Previously, the API reported that U.S. crude supplies rose by 3.453 million barrels for the week ended Nov. 23.
The EIA will report US crude inventories for the week ended 30th Nov. on Wednesday. The market expects that the EIA will report a 2 M barrel rise in US crude inventories for the week. Previously, the EIA reported that U.S. crude inventories rose by 3.57 million barrels for the week ended Nov. 23.
On the technical front, the RSI is currently at 38.94% and suggests that the market can continue trading sideways. The current Price is below the middle line of the Bollinger bands but is heading upwards. The current price is above the MA5.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 52.60, Take Profit At 53.30 Stop Loss At 52.20